Self Builds
The biggest house builders in the market develop between 12,000 to 15,000 houses per annum, while self builders are responsible for approximately 20,000 per annum. At Mayfair Consulting our consultants can arrange a mortgage for self-builders very easily.
Finance can be secured on the property being built or even just the plot at outset. In the majority of cases an initial release of funds will be made to buy the land, with stage payments. Many clients have a sufficient quantity of land at their current residence and may choose to build a new house on the garden have the title of their land split between the two houses. Clients have the option to remortgage their existing property if they have sufficient equity to build the new house or raise monies on the building plot and the property under construction.
Lenders usually offer 70% on a self build mortgage while a few may offer 100% funding of build costs. If the client can provide additional security e.g. a second charge on their exiting property, 100% of all costs may be feasible.
The main reason why people become involved in renovation and extension is to add capital value to their existing property.
Tax breaks – the majority of VAT for materials and services is redeemable. If you buy a plot of land under the £125,000 threshold stamp duty will not be liable.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
